Nov. 14, 2012

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| A Journal News editorial

New York State Thruway Executive Director Thomas Madison, in September announcing federal approval of the state's plan to replace the Tappan Zee Bridge during a press conference in South Nyack. Madison announced Tuesday that a controversial 45 percent toll hike for large trucks was on hold while the authority performed its 'due diligence.' / Mark Vergari/The Journal News

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The New York State Thruway Authority this week put the brakes on a controversial, 45 percent toll hike for large trucks — a revenue stream that had been identified by both the Thruway and two credit-rating agencies as integral to getting the authority’s finances in shape as it prepares to borrow billions to build a new Tappan Zee Bridge.

How important the toll hike truly was to the authority — and the Thruway’s overall financial picture — remains unclear, even to its own board members. “I’m beginning to think that if the 45 percent (toll hike) is needed, why are we playing games with it? I’m beginning to think that 45 percent is not a figure we need,” Thruway board Vice Chairwoman Donna Luh told The Buffalo News. “I’m feeling totally frustrated.” She’s hardly alone.

The quasi-governmental agency has long been criticized as a poorly managed, money-leaking entity. Even its own report, commissioned by new Chairman Howard Milstein, contained a litany of bad fiscal choices, such as relying on expensive short-term debt to pay for long-term projects. That report recommended various fixes, including putting the system’s truck tolls on “parity” with nearby states’ toll rates.

Opacity, magnified

The 45 percent truck toll — described by the Thruway as “modest” — was instantly criticized by business groups like Unshackle Upstate, which said it would kill jobs and saddle consumers with higher prices for goods. State Comptroller Thomas DiNapoli also blasted the toll hike for similar reasons, and pointed to the kind of fiscal folly contained in the Thruway’s own report.

Unshackle Upstate and others called for a forensic audit before proceeding with such a toll hike.

The Thruway soon made matters worse. A board meeting was first scheduled for Friday in Suffern, with little public notice and no formal agenda. It was then postponed until Tuesday, to take place in Albany, still with no agenda. That meeting was then canceled the night before, magnifying the secrecy. It wasn’t until the next day that Thruway Executive Director Thomas Madison said the truck toll hike was on hold as the agency performed its “due diligence.”

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Such public obfuscation — whether intentional or not — hardly instills faith in the Thruway Authority’s ability to wisely manage its assets.

It’s unlikely a significant truck toll hike is dead — credit agencies have made it clear that the authority needs to shore up revenue to preserve a healthy credit rating. And despite the protestations from upstate business and trucker organizations, it’s even unclear if a toll hike for trucks is unreasonable — road infrastructure throughout the nation is underfunded.

The Thruway Authority, though, failed to present a clear case for such a significant toll hike, and failed to outline other steps that would be taken before putting its revenue needs on the backs of truckers.

Who pays for what

Meanwhile, the Thruway Authority will likely get federal funding for the Tappan Zee Bridge. As reported Wednesday, the state continues to pursue federal Transportation Infrastructure Finance and Innovation Act loans for the new bridge, a project that Gov. Andrew Cuomo has called a symbol of the new New York. Discussions have been “very positive,” according to Brian Conybeare, Cuomo’s special adviser on the project. (See full coverage on LoHud.com.)

But the balance of the bill for the bridge — $2 billion or more — would be covered by Thruway bonding. The authority’s credit rating will greatly impact the final cost, to toll payers, of the new bridge.

Earlier predictions that new Tappan Zee tolls could hit $14 drew public ire; even the governor himself called that “too high.”

How much more large commercial vehicles will have to pay along the Thruway and how much commuters will pay on the bridge are interconnected. But those hard numbers remain as elusive as the Thruway Authority’s fuzzy finances. After this week’s toll-hearing follies, that forensic audit looks like a better idea. Meanwhile, Madison should stay true to his promise of “due diligence” before moving forward with any increases.

Truckers and regular commuters must pay their fair share, but not any more than that.